SunGard has enhanced its Stream GMI clearing and accounting solution with the addition of automated processing of futures, options on futures and options on spots traded on BM&FBOVESPA (BVMF), the Brazilian securities, commodities and futures exchange. The extended coverage helps investment banks, brokerage houses and Futures Commission Merchants outside Brazil better access and trade BVMF’s cleared derivatives market and reduce their operational risk.
Stream GMI has provided support for BVMF’s exchange-traded financial and agricultural derivatives since 2010.
The new functionality in Stream GMI helps automate the process of clearing, settlement and recordkeeping of futures, options on futures and options on spots, helping improve the efficiency of post-trade processing of these instruments. Stream GMI also helps firms that trade on the BVMF reduce operational risk and manage their credit exposure through the automation of many manual functions, including the independent calculation of initial margins using the BVMF margin algorithm; the processing of BVMF’s exchange, registration, permanence and delivery fees and related charges; and the application of product-specific FX conversion rates and open trade equity calculations.
Laurent Jacquemin, executive vice president of post-trade derivatives for SunGard’s capital markets business, said, “Brazil continues to attract foreign investors and brokers that want to leverage the country’s economic growth. Stream GMI’s enhanced functionality helps improve their access to cleared derivatives in Brazil while helping these firms reduce risk and increase efficiency through automation.”
A clearing and accounting system for global exchange-traded derivatives, futures and options, SunGard’s Stream GMI supports the activities of clearing firms, securities firms, brokerage houses, and other participants in derivatives trading, such as multi-national agriculture and energy companies. Stream GMI links to exchanges worldwide for access to pricing updates, margins and risk arrays. Customers use Stream GMI to help eliminate manual processes and consolidate data in a single integrated accounting system, control costs and increase competitiveness.